A P2P platform known as United Financial, which has been running for five years in Shenzhen, announced the suspension of its business for rectification Monday, the Southern Metropolis Daily reported.

According to a hardcopy notification issued by the company, it is facing cash flow difficulties as some investors collectively requested that the P2P platform urge debtors to return money in order to lower financial risks.

The company announced Monday that it planned to file reports to the Shenzhen Internet Finance Association, Futian’s public security sub-bureau and the municipal government’s finance service office to suspend its operation and would summon a meeting to set up a creditors committee.

“The suspension does not mean the platform is undergoing liquidation or running away without responsibilities, but is rather a rectification act to protect the investors’ rights,” read the notification.

The company’s portal shows that there are currently over 1.3 million people registered on the platform and the total turnover had reached 1.83 billion yuan (US$274 million). Over 100,000 investors have lent money through the platform.

Public information indicates that the company is headquartered in Shenzhen with an initial registration fund of 200 million yuan and has completed a C round of financing.

An analyst and also CEO of a financial company, Liu Xiaofeng, said that many online P2P platforms choose to suspend operation for rectification when facing operational pressures.

Liu estimated that more P2P platforms may choose to suspend operations since the market is intense at the moment for multiple reasons, such as the stricter supervision over financial institutions and more intense cash flow.

(Zhang Qian)